Lithium mining is the extraction of lithium from various sources such as hard rocks and brines. Producing lithium from brines is a cost-effective and the most efficient process. Byproducts extracted from lithium mining include saleable compounds such as boron or potash. Other alternative sources used to extract lithium are heavy oil wastewater and hydraulic fracturing brine. Further, the increasing use of lithium in lubricants, batteries, and steel and aluminum production, and others, is creating opportunities for the lithium mining market in the coming years. Lithium market is continuing to grow at a healthy rate with growing demand for large number of batteries globally. According to the estimates, the global lithium mining market is poised to grow at a CAGR of 4.1% during the forecast period.
Based on the source, lithium is mainly extracted from brine water sources such as seawater and groundwater, and other surface water sources. Among brine water sources, briny lakes offer the highest concentration of lithium. However, lithium mining is affected by changing weather conditions, which is restraining the demand for lithium mining from brine deposits in recent years. Further, the hard rock lithium deposit is expected to witness the fastest growth during the forecast period. Hard rock lithium deposits are less dependent on changing climate for production and are evenly distributed across the globe. Owing to this, lithium mining from hard rocks is expected to grow in the coming years.
Based on the application, the global lithium mining market is segmented as batteries, glass, air conditioning equipment, grease and chemicals, and others. Among these majority of the lithium is used in battery making. According to the research, lithium ion battery is already worth US$ 31.8 billion in 2018 and will grow at 6.9% during the timeframe. Demand will rise from electronic industry as well as transportation sector. New energy vehicles has become a norm in most parts of country. This will positively impact the demand for lithium globally.
Based on the type, lithium hydroxide dominated the market in 2018, owing to the high standard and superior performance offered by the product. This product is widely used in glass, metal castings, and others. Based on applications, the battery segment holds a significant share owing to the high consumption of the metal in the production of electric and hybrid vehicles, energy storage systems, lithium-ion batteries, and others.
Asia pacific dominated the market in 2018 and is expected to show similar trends during the forecast period. The increasing adoption of lightweight metals in batteries, glass, grease, and others is driving the growth of the lithium mining market in the region. China is leading the Asia market as the region has highly concentrated lithium deposits.
North America is another big market for companies. Various companies are already setting up production plant for batteries. In 2018, Tesla and Samsung Collaborated to produce batteries so as to meet requirement for energy vehicles. These development has further solidified the market presence of lithium in the region. European market is growing at a stable growth. Demand for lithium in the region is arising owing to government stringent regulations coupled with demand for lightweight products in end-use industries. There are range of companies in battery, glass and grease manufacturing in Europe. The organized manufacturing cluster will continue to create demand for lithium in the region. UK, Germany, Italy are the prominent market in Europe lithium mining market. Middle East and Latin America accounted for less than 9% share. Brazil, Argentina and GCC are key destination for lithium mining players.
Some key players covered in the report are Wealth Minerals Ltd, FMC Lithium, MGX Minerals Inc, Tianqi Lithium Corporation, Jiangxi Ganfeng Lithium Co., Ltd., Albemarle Corporation, SQM, Nemaska Lithium, and Galaxy Resources Limited.